Developers have weak case against Salinas, judge rules

Most of lawsuit tossed

A Superior Court judge has tossed most of a lawsuit by a downtown development group against Salinas city officials, including exiting Mayor Dennis Donohue.

Judge Kay Kingsley on Friday ruled that Salinas Renaissance Partners developers Bob and Curtis Leidig failed to prove they could prevail on the $2 million suit, which alleged city officials breached a development agreement involving a plan to revitalize the downtown area.

According to a news release from the city, Kingsley ruled that specific language in the agreement and various immunities protecting city officials and employees against personal liability for city decisions made it impossible for the Leidigs to win their claim.

In a statement, City Attorney Vanessa Vallarta called the ruling "very good news for the people of Salinas" and added she hoped the plaintiffs would choose not to pursue the rest of the lawsuit.

"The city and the mayor must be responsible stewards of public money, and they need to be able to make prudent decisions that they believe to be in the best interest of the city," she said.

Vallarta said city officials ended the agreement with the development group after negotiations made it clear that the revitalization plan was "impractical and called for too much of a public subsidy."

The remaining cause of action in the suit seeks the return of "confidential documents" the developers allege the city never returned, Vallarta said, adding that the city had not received a request for their return until the suit was filed.